Virgin Orbit pauses operations; seeks funding
Virgin Orbit today paused all operations for at least a week, putting almost its entire staff on furlough as it seeks new financing.
Chief Executive Dan Hart told staff that the furlough would buy Virgin Orbit time to finalise a new investment plan, a source who attended the event told Reuters news agency. It was not clear how long the furlough would last, but Mr Hart said employees would be given more information by the middle of next week.
If Virgin Orbit dies, its death will be because a British government agency killed it. The company had planned on launching from Cornwall in the early fall of 2022, at the latest, and then do several other launches in 2022, all of which would have earned it revenue. Instead, the UK’s Civil Aviation Authority (CAA) delayed issuing the launch license until January 2023, about a half a year later, preventing Virgin Orbit from launching for that time and literally cutting it off from any ability to make money. The result was that it ran out of funds.
Obviously the launch failure that followed the CAA’s approval did not help. Nor did the company’s decision to rely on only one 747 to launch its satellites. Nonetheless, the fault of this company’s death can mostly be attributed to a government bureaucracy that failed in its job so badly that it destroyed a private company.
Virgin Orbit today paused all operations for at least a week, putting almost its entire staff on furlough as it seeks new financing.
Chief Executive Dan Hart told staff that the furlough would buy Virgin Orbit time to finalise a new investment plan, a source who attended the event told Reuters news agency. It was not clear how long the furlough would last, but Mr Hart said employees would be given more information by the middle of next week.
If Virgin Orbit dies, its death will be because a British government agency killed it. The company had planned on launching from Cornwall in the early fall of 2022, at the latest, and then do several other launches in 2022, all of which would have earned it revenue. Instead, the UK’s Civil Aviation Authority (CAA) delayed issuing the launch license until January 2023, about a half a year later, preventing Virgin Orbit from launching for that time and literally cutting it off from any ability to make money. The result was that it ran out of funds.
Obviously the launch failure that followed the CAA’s approval did not help. Nor did the company’s decision to rely on only one 747 to launch its satellites. Nonetheless, the fault of this company’s death can mostly be attributed to a government bureaucracy that failed in its job so badly that it destroyed a private company.